As of this writing, angular-mocks is at v1.2.14 and does not work with angular v1.2.12. When Karma is run, it fails with following error:

Failed to instantiate module ngMock due to Unknown provider: $$rAFProvider

I had to go back to a previous version of angular-mocks v1.2.3. So install v1.2.3:

cmd> bower install angular-mocks#1.2.3

Both angular and angular-mocks will be installed in c:/projects/angrails/test/javascript/lib/bower_components. You can delete the “angular” directory, because we already included it in the grails-app/assets. You would rather not want two angular imports in your project, as you must remember to update both for version changes.

#Answer in the following manner (of course you can choose to answer differently)

Which testing framework do you want to use ?
Press tab to list possible options. Enter to move to the next question.
> jasmine
Do you want to use Require.js ?
This will add Require.js plugin.
Press tab to list possible options. Enter to move to the next question.
> no
Do you want to capture a browser automatically ?
Press tab to list possible options. Enter empty string to move to the next question.
> Chrome
>
What is the location of your source and test files ?
You can use glob patterns, eg. "js/*.js" or "test/**/*Spec.js".
Enter empty string to move to the next question.
> ../../../grails-app/assets/bower_components/jquery/dist/jquery.js
> ../../../grails-app/assets/bower_components/angular/angular.js
> ../../../grails-app/assets/javascripts/**/*.js
> ../../../test/javascript/lib/bower_components/angular-mocks/angular-mocks.js
> ../../../test/javascript/unit/**/*.js
>
Should any of the files included by the previous patterns be excluded ?
You can use glob patterns, eg. "**/*.swp".
Enter empty string to move to the next question.
>
Do you want Karma to watch all the files and run the tests on change ?
Press tab to list possible options.
> yes
Config file generated at "c:\projects\angrails\test\javascript\config\karma.conf.js".

Optionally, you can edit the karma.conf.js and set the basepath to: basePath: ‘./../../../’, and remove the ../../../ from the file includes.

Step: Start Karma

cmd> karma start karma.conf.js

You should see a chrome browser started pointing to 9876 port. There is nothing to test yet. Keep the Karma running.

@Suryazi, try installing karma again via npm -g karma. Check if there are any errors while installing. Another try is to delete the npm-cache (c:\users\$username\AppData\Roaming\npm-cache) and try installing karma.